EU could block trade deals for three years after Brexit

Philip Hammond has claimed that Britain will be able to negotiate with EU countries during a transition periodADRIANO MACHADO/REUTERS

Philip Hammond, the chancellor, has won a cabinet battle for a business-friendly Brexit transition that could leave Britain unable to strike free-trade deals for years after it has left the European Union.

Liam Fox, the trade secretary, wanted to be able to sign deals with non-EU countries straight after Brexit in March 2019. Dr Fox and Boris Johnson, the foreign secretary, were unhappy with recent statements by the chancellor that suggested a lengthy transition when little would change.

However, David Davis, the Brexit secretary, will signal today that Mr Hammond has the upper hand by announcing plans for the present customs arrangements to stay in place for an “interim period” that could last for up to three years.

The customs union is a trade agreement…

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